Fitbit posts smaller loss on strong smartwatch sales

(Reuters) - Fitbit Inc (FIT.N) on Wednesday outpaced Wall Street estimates for quarterly results as its strategy of adding smartwatches to its product line got a boost in the second quarter with higher sales for ‘mass-appeal’ Versa.

FILE PHOTO: The ticker symbol for Fitbit is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) February 23, 2016. REUTERS/Brendan McDermid/File Photo

Smartwatch sales in the second quarter accounted for about 55 percent of its total revenue of $299.3 million, which beat estimates of $285.4 million.

Shares of the company rose 3 percent to $6.11 in after-hours trading, with the company selling a total of 2.7 million devices in the quarter, above FactSet’s average estimate of 2.5 million.

Fitbit, which is popular for its colorful fitness trackers, is a late entrant to the smartwatch market and has been facing stiff competition from tech players with deeper pockets such as Apple Inc (AAPL.O) and Samsung Electronics (005930.KS).

Versa smartwatch outsold Samsung, Garmin and Fossil smartwatches combined in North America in the quarter, Chief Executive Officer James Park said in a statement.